Company Structure in the Energy Industry

Here is a table of the occupations in the green building in Maryland. In the table, we can see that in the energy industry, most of the workforce are hourly workers, and their wages are not high.

Kinder Morgan is one of the largest energy companies in the US, which focuses on the delivery of oil and natural gas and owns over 30,000 miles of pipelines around the whole country, taking up 33.6% market share in the natural gas liquids pipeline transportation in the US (IBIS World). The company has a complex business structure. Most of the company’s asserts are held by Kinder Morgan Energy Partners, which is a master limited partnership, this kind of structure could help avoid corporate taxes when being traded on the stock, which makes investors gain much more money. And the third entity in the company, Kinder Morgan Management makes institutional investors be able to hold equity in Kinder Morgan Energy Partners. The Kinder Morgan Energy Partners claim to be simple. “We own, operate, expand, build and acquire primarily fee-based energy assets that typically have minimal exposure to commodity price volatility” (Corporate Responsibility). This kind of business model is backed up by a strong and stable financial support and could consistently ensure the fluent cash flow of the whole corporation.

References:
48699 - Natural Gas Liquids Pipeline Transportation in the US Major companies (2011) Retrieved from http://clients.ibisworld.com.proxyau.wrlc.org/industryus/Majorcompanies.aspx?indid=1184 on 7th Oct 2011
“Corporate Responsibility” (2011) Retrieved from http://www.kindermorgan.com/responsibility/
Maryland's Energy Industry Workforce Report http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&ved=0CHgQFjAE&url=http%3A%2F%2Fwww.mdworkforce.com%2Fpub%2Fenergyworkforce.doc&ei=G9nATpTuLaP10gGe8u3tBA&usg=AFQjCNFu2LjZyBvdmrwagVxPvXoXxI1VOA&sig2=XXvu9rwkB-h4zTAyhnRb_g